AC pays Trump $34M in tax appeals

ATLANTIC CITY, N.J. (AP) -- Donald Trump's three casinos have rolled a seven in a high-stakes game with Atlantic City over how much the properties are really worth.

The city council on Thursday approved a $34 million settlement with Trump Entertainment Resorts for 19 tax appeals the company filed.

Trump Entertainment had argued that the city assessed the properties too high.

City officials feared they could have lost as much as $93 million had the cases gone to trial.

"I didn't feel comfortable rolling the dice with the citizens," council president and acting Mayor William "Speedy" Marsh said.

The settlement consists of $12 million in cash for 2007, and then $4 million per year in tax credits for 2009 to 2011 and $5 million per year in credits for 2012 and 2013, officials said. Atlantic County will contribute $5 million to the settlement, as repayment for the proportional tax money the city had turned over to the county.

Trump Entertainment spokesman Tom Hickey called the agreement "fair to the city, fair to the company and fair to the taxpayers."

Atlantic City Finance Director Jack Potts said taxpayers will not suffer as a result of the deal.